Motorists over the age of 70 who drive electric vehicles could face an additional £50 a year in car tax under new rules set to take effect on Scottish roads. The charge forms part of Labour's new electric Vehicle Excise Duty (eVED), a pay-per-mile levy that will apply to every electric vehicle driver from April 2028.
The policy is designed to recover lost fuel duty income as more motorists switch to electric vehicles. The charge is expected to disproportionately affect those who drive the most, with commuters covering over 10,000 miles annually hit hardest.
Costs for older drivers
However, pensioners will also feel the impact. According to Taking Care Personal Alarms, the typical annual mileage of drivers aged over 70 is 1,665 miles. A simple calculation shows that motorists covering this distance each year would be liable for £49.95 in eVED charges.
Plug-in hybrid drivers will pay 1.5p per mile under the new arrangements. Over the same 1,665 miles, elderly motorists driving hybrid vehicles would face an extra £24.98 per year, reports the Express.
How the scheme works
Age UK previously explained: "From 2028, EV owners will pay a 3p per mile surcharge on their Vehicle Excise Duty (VED), which brings another cost into the equation. This government tax is designed to increase revenue lost to fuel duty."
The new eVED charges are expected to be paid on top of existing Vehicle Excise Duty fees, though the costs are still anticipated to be lower than the fuel duty charges currently paid by petrol and diesel vehicle owners.
Motorists will be required to pay eVED fees in advance, with mileage subsequently used to establish whether road users have accurately declared their annual road usage. HM Revenue and Customs stated: "VED is administered by Driver and Vehicle Licensing Agency (DVLA). They will also administer eVED."
Motorists will pay an upfront charge based on their estimate or spread their payment across the year, with the year-end mileage reading triggering a reconciliation. Mileage data from cars is currently collected at annual MOTs and is available to view for most cars on GOV.UK.
